BOSTON--(BUSINESS WIRE)--China’s 12th Five-Year Plan, rated the most holistic plan for
technology development anywhere in the world, reflects its quest to
transform from a manufacturer into an innovator, as the rising Asian
giant raises R&D funding for emerging technologies by 159% to $18
billion, according to a Lux
Research report.

“China is the largest manufacturing country in the world. Due to the
weakening market demands in the developed countries, the traditional
development model, which relies on manufacturing and real estate
industries, has faced a big challenge,” said Xavier Xie, Lux Research
Analyst and, with Richard Jun Li, the lead author of the report. “To
achieve a sustainable growth, China has determined to focus on seven
strategic and emerging industries: environmental technology, new energy,
new energy vehicles, advanced equipment, biotechnology, new material,
and information technology.”

Lux analysts closely studied the 12th Five-Year Plan and
spoke to top Chinese government officials. Among their findings:

R&D funding will grow at an unprecedented rate, but miss targets. In
the 12th Five-Year Plan, China is raising R&D funding for
emerging technologies by 159% to $18 billion as the global
manufacturing powerhouse bids to transform itself into an innovator.
Still, it will miss the goal of 3% of GDP, a ratio maintained by
several developed countries to maintain their edge in technology.

Environmental technology and new energy are focus sectors.
China plans to combat environmental challenges by focusing on
sustainable growth. Around 48% of its planned $18 billion investment
on emerging technologies will go to environmental technologies,
followed by 32% and 12%, respectively, for new energy and smart grid
sectors.

Foreign joint ventures will be welcomed. China is so keen to
emerge as an innovation hub that it is ready to shed its secretive
approach and partner with foreign companies. A director in China’s
Ministry of Science and Technology says they will support joint
research programs developed by foreign research labs or multinational
companies with their Chinese counterparts. This will create unforeseen
opportunities for western companies.

Hear more views on this subject at the complimentary Lux Research
webinar on March 13th at 9:00 EST. Click
here to reserve your webinar seat to “The Chinese 12th Five-Year
Plan on Strategic Emerging Industries.” The report, “Profiting from
Predictable Policy: Interpreting China's 12th Five-Year Plan for
Emerging Technology” is part of the Lux
Research China Innovation Intelligence service.

About Lux Research

Lux Research provides strategic advice and on‐going intelligence for
emerging technologies. Leaders in business, finance and government rely
on us to help them make informed strategic decisions. Through our unique
research approach focused on primary research and our extensive global
network, we deliver insight, connections and competitive advantage to
our clients. Visit www.luxresearchinc.com
for more information.